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Rupee Continues to Slide vs USD, Jack Ma to Step Down Next Year et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 10, 2018 12:26 PM 2 min read
Editorial

Good evening readers, I'm sure today's choppy markets, the continuing Rupee spiral, and the Bharat Bandh ruckus took some attention off your Monday blues (if you showed up to work that is). 

 

Nevertheless it marks an interesting start to the week demonstrating how global capital flows can quickly cause contagion to geographically distant regions, in this case the Emerging markets. Do check our recent assessment of the Indian Economy which covers how rising crude oil and a tightening US rate environment is playing with the Indian Rupee, and may continue to do so in the medium term. Djokovic winning the US Open Men's Singles may ease the pain i.e. if you like him as much as I do ;)

 

Presenting today's top 6 business stories through our End Of Day Wrap Up:

 

INDIA

India's above expectations current-account data fails to control Rupee slide. INR hits record low of 72.67

Emerging markets contagion driving Rupee drop with Indian government bond yields rising, Turkish Lira weakening etc. Moody's indicate sustained weakening of Rupee can be credit negative.

 

Axis Bank appoints Amitabh Chaudhry, currently heading HDFC Standard Life, as MD & CEO

To replace current CEO Shikha Sharma, who will step down end of this year. 

 

MCA kick-off phase II of identifying and removing shell companies, going after the next 100,000 entities

After sending show-cause notices to 225,000 companies which had not filed returns for 2 years with the RoC and stock exchanges. 70,000 have already been struck off.

 

Canadian asset manager Brookfield leading process to acquire the gas pipeline of East West Pipeline, earlier called Reliance Gas Transportation Infrastructure.

The acquisition of the 1,400km pipeline, owned by Mukesh Ambani, connects Kakinada in Andhra Pradesh to Bharuch in Gujarat. This would become one of the first acquisitions by the Canadian firm in Indian oil and gas infrastructure sector. Acquisition to happen through an InvIT structure.

 

US / INTERNATIONAL

Alibaba Group CEO Daniel Zhang to succeed Founder Jack Ma as Executive Chairman.

Jack Ma to stay on Board till 2020 and to continue in his role as founding partner in the Alibaba Partnership - a group of senior executives who have the right to nominate most of Alibaba's Board without holding majority shareholding.

 

US data demonstrate a robust economy. Wages higher and non-farm payroll up by 201,000 in August.

Unemployment rate at 3.9% in August for the second month in a row. Private-sector hourly wages grow by 2.9% yoy. Higher wages may be indicative of modest buildup in inflation, which may push the Fed to more aggressively increase short-term interest rates.

 

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